Ukrainian carrier AeroSvit has filed for bankruptcy proceedings before a Kiev court in order to undertake a restructuring process and restore solvency.
The Kiev commercial court ruled on 29 December that bankruptcy proceedings should begin against the struggling carrier.
AeroSvit's debts amount to Hr4.27 billion ($530 million) but total assets of only Hr1.47 billion, according to the state registry records from the Kiev commercial court.
"In view of [this] the debtor is unable to pay off existing debts to all creditors simultaneously," the court record states.
It says the court found "sufficient material" to support the initiation of bankruptcy proceedings, and appointed Leonid Talan as administrator.
AeroSvit stresses that "as of today, the airline is not bankrupt" and adds that it is continuing to operate and fulfil its commitments to contractors.
"The airline's management remains unchanged and keeps functioning, with all procedures assuring normal operational activities - including flight-safety assurance - being carried out in full," it says.
The airline appointed a new general director, Iurii Iemelianov, in mid-November, replacing Alexander Avdieiev.
Iemelianov was previously the head of ground-handling firm Aerohandling, but had also occupied senior management roles at AeroSvit and Donbassaero.
AeroSvit says it intends to reorganise its business to "restore operating efficiency" and increase revenues.